4 Financial tips for the second week of February 2013

Tip no 1: Make sure you follow up with your mortgage company after requesting a loan modification.

There is no law in the country, which states that lenders are bound to modify mortgage loans. They agree to modify loans as per their will. So, you need to take care of all the issues when you're trying for loan modification.

Don't feel relaxed after sending letters and documents to your lender. Call your lender and ask him/her if he/she has received all the documents. Find out if your lender has received the correct documents only.

In case, your lender has rejected your loan modification request, then don't get disheartened. Rather, follow up with your lender and find out the reason behind the denial.

Tip no 2: Always set targets for yourself when it comes to paying off debt.

If you set a target for yourself, then it'll be easier for you to get rid of debt. For instance: you set a target for yourself to get rid of debt by the end of 2013. Although it is not certain that you'll get out of debt by the end of 2013, yet you can solve a major portion of your financial problems. You'll try hard to reach your financial goal. You'll take steps to negotiate with your creditors and facilitate a payment plan. Just make sure you set a target, which you can probably meet in future. An unrealistic target will not be of any use.

Tip no 3: Debt repayment is as easy and good as your plans are.

If your debt repayment plan is not strong and well conceived, then you can very well forget about getting rid of debts. For instance: you enter into a monthly payment plan that you can’t afford. In that case, it’ll be impossible for you to continue with the payment plan for long. You’ll be forced to discontinue it at some point of time. This will make it difficult for you to get out of debt.

On the other hand, if you enter into a monthly payment plan, which you can easily afford, then it'll be equally easy for you to eliminate debt.

Tip no 4: Dry your clothes in open air and save money.

Believe it or not, you can save money by hanging your clothes in an open space. You can tie a rope between 2 poles and hang your clothes there. Let your clothes get dried in the open air. This will help you save around $130 per year on your energy bill. The amount will obviously vary on the basis of how much laundry you basically do.

There is yet another benefit of drying your clothes in open air. Usually, dryers diminish the quality of clothes. This compels you purchase new clothes prematurely. You can retain the quality of your clothes by drying them in open air.